India: Potato futures up on concern output will fall

Potato futures rose on Thursday on speculation a persistent cold wave in the northern region could hurt output, analysts said.

On the Multi Commodity Exchange of India, potato futures rose more than 1 per cent, with the most active March contract at Rs 598, up 1.15 per cent.

"Futures price is rising only on speculation,"Abhijeet Choudhuri, an analyst with research house Agriwatch, said. "There are speculations that output would fall due to the cold wave.""At least 10-15 percent crop loss has been reported in India. But this rise is only temporary as arrivals will start soon."

India's potato production in 2007/08 is likely to grow 4.5 per cent, half its earlier 10 per cent estimate, on crop damage, the National Horticulture Research Development Foundation, which monitors potatoes and onions for the government said.